BitMEX Hit With Class-Action Suit Alleging Theft, Insider Trading

BitMEX is facing a proposed class action lawsuit alleging bitcoin theft and insider trading. The suit was filed in the US District Court for the Southern District of New York on July 23, the same day BitMEX announced it would shut down operations by September 23, closing out an 11-year run.

Plaintiffs BKX Services and David Namdar claim combined losses of 622.66 BTC, worth roughly $40.7 million, resulting from forced liquidations on the platform.

Allegations Target Company’s Collateral System

The complaint alleges BitMEX and co founders Arthur Hayes, Ben Delo and Samuel Reed built a system designed to retain customer collateral, transferring remaining bitcoin into the platform’s insurance fund. It further claims an internal trading desk had access to private customer data and could keep trading during server freezes that blocked other users from closing positions.

Plaintiffs Say Losses Exceeded Actual Debt

BitMEX allowed traders to leverage positions up to 100 times their collateral. The plaintiffs allege their positions were liquidated while collateral remained worth roughly twice their actual losses, with the platform withholding the remaining balance.

Similar Claims Made in Earlier 2020 Case

A comparable lawsuit filed in 2020 was closed in June 2025 without a ruling on the liquidation allegations. The new complaint names parent company HDR Global Trading, several affiliates and the exchange’s co-founders as defendants, seeking the return of bitcoin along with compensatory and punitive damages.

Leadership Shake-Up Preceded Shutdown

BitMEX’s closure follows a strategic review and major leadership changes, including the departure of its CEO, CFO and head of growth last month, with general counsel Peter Wilkinson stepping in as CEO.